Romania unveils a major fiscal reform package aimed at boosting investment and streamlining tax compliance, featuring incentives for timely tax payments, increased VAT thresholds to improve cash flow, and targeted support for strategic projects worth at least RON 1 billion across priority sectors, including manufacturing, defence, and green technology.
Romania’s Ministry of Finance has published a comprehensive fiscal and investment package on 9 February 2026, designed to accelerate economic recovery and modernise the country’s tax framework.
Earlier, the Ministry of Finance published a draft bill proposing amendments to the Fiscal Code, as approved by Law No. 227/2015, on 5 February 2026.
The initiative focuses on strategic investments, improved business liquidity, and simplified taxation, while aligning with European policies.
Tax bonus for individuals and businesses
The government is introducing a 3% tax bonus for businesses and individuals who file declarations and pay their full tax obligations by 15 April 2026.
VAT cash accounting threshold increase
To ease cash flow pressures, the VAT on collection threshold will rise from RON 4.5 million to RON 5 million in 2026 and RON 5.5 million in 2027. This allows businesses to pay VAT only after receiving payment from clients, rather than financing the state from their own resources.
Corporate tax return deadline
The standard annual corporate income tax return deadline will be unified to the 25th day of the sixth month following the end of the financial year for all taxpayers, except those in special situations (e.g., mergers or liquidation).
Large-scale project support
The package establishes financing mechanisms for strategic investments worth at least RON 1 billion, offering grants, tax credits, state guarantees, and interest subsidies. Projects must generate economic multiplier effects and create high-skilled jobs, with a five-year maintenance requirement.
Priority sectors
The proposal introduces state aid schemes exempt from European notification for priority sectors, subject to minimum investment thresholds. Eligible projects include manufacturing industries with trade deficits (minimum RON 50 million), critical minerals and “net zero” technologies (RON 75 million), high-tech R&D (RON 5–50 million), defence industry projects (at least RON 10 million), and regional convergence initiatives (RON 7–50 million). Support measures include direct grants, seven-year tax credits, and enhanced 200% deductions for research-related tangible and intangible asset expenses.
R&D tax incentives
A new 10% tax credit for eligible R&D expenses is introduced, available as an alternative to the existing 50% additional deductibility regime, at the company’s option. Specific rules apply to fiscal groups.
Accelerated depreciation for R&D equipment remains available regardless of whether the 10% tax credit or the 50% deductibility is chosen.
The 10% tax credit is deductible against corporate income tax or minimum turnover tax, subject to specific rules, but it is not taken into account when comparing corporate income tax with the minimum turnover tax.
Unused tax credits may be carried forward for 4 years (instead of the standard 5-year limitation period) and may be refunded or offset against other tax liabilities, except for withholding taxes and top-up tax under Law No. 431/2023 (Pillar Two). Carried-forward R&D tax credit amounts are treated as non-taxable income.
Additional measures on reinvested profit
Starting in 2026 and in subsequent years, reinvested profit reserves will be subject to a 5-year restriction on use. If utilised within this period, the amounts will be fully taxed as income in the year of use.
If distributed after 5 years, 50% of the reserve amount will be treated as taxable income in the year of use, except where distributed upon company liquidation.
Reserves used after 5 years for share capital increases or to cover losses will remain tax-exempt.
